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An In-depth Exploration of Short and Long-Term Holder Realized Prices:

The concept of Realized Price encapsulates the average cost basis of all bitcoins in circulation, computed by dividing the total value of acquired bitcoins by the circulating supply.

Understanding the average acquisition price of bitcoins is crucial for assessing market sentiment. 

When Bitcoin's price trades above the realized price, it signals profitability for Bitcoin holders on average. Conversely, when the price of Bitcoin falls below the realized price, it indicates that, on average, Bitcoin investors are holding their coins at a loss. 

This insight provides valuable information about investor behavior and sentiment, offering clues about the overall health of the market and potential future movements.

We delve further into the Realized Price of distinct cohorts of unspent bitcoins—bitcoins that have been acquired but not yet spent, known in technical terms as UTXOs. 

Initially, we categorize these unspent bitcoins into two primary age groups: short-term holders and long-term holders, a distinction frequently referenced by analysts.

Short-term holders (STH) are those who have held Bitcoin for a period not exceeding six months, while long-term holders (LTH) have held Bitcoin for a duration surpassing six months. 

This six-month threshold holds significance due to statistical observations indicating that holders within this timeframe exhibit a higher propensity to spend their bitcoins compared to those holding for more extended periods.

Short-Term Holder Realized Price (STH RP) serves as a key metric, tracking the average price at which Bitcoin is transferred on the blockchain by short-term holders.

Similarly, Long-Term Holder Realized Price (LTH RP) meticulously tracks the average Bitcoin transaction price among long-term holders, offering invaluable insights into their sentiment and transactional patterns.

During bear markets, there's often a noticeable dip in the realized price among short-term holders, suggesting that a majority of them, who initially acquired Bitcoin at higher prices, are offloading their holdings to newer market entrants at reduced rates. 

Consequently, the realized price for short-term holders diminishes during bear markets, serving as a pivotal indicator for detecting Bitcoin bear markets.

As the bear market draws to a close, we consistently observe the price dipping below both the realized price of short-term holders and long-term holders. 

This situation signifies a maximum fear indication, indicating that, on average, all participants in the Bitcoin market are facing losses. 

0nchained envisions a future where blockchain technology serves as the cornerstone of financial innovation and transparency. Our mission is to empower investment banks, cryptocurrency companies, traders, and investors with unparalleled insights into the blockchain universe through advanced on-chain analytics.

We are committed to fostering a world where data-driven decisions drive trust, security, and growth within the digital asset ecosystem.

Our vision is to be the trusted partner in unlocking the full potential of blockchain through innovative, reliable, and comprehensive on-chain analysis, paving the way for a more inclusive, efficient, and decentralized financial world.

Warm regards,
Adam Mourad
CEO, 0nchained